Market News

California’s Resale Housing Market in December

The California Association of Realtors (CAR) recently released their December 2009 report for existing home sales and prices in California. Statewide, sales of existing single-family homes rose by +1.7% (compared with December 2008) to 558,320 units (seasonally adjusted, annualized rate) while the median price increased by +8.4%. The was the second consecutive year-over-year price increase (in November prices rose by +4.7% for the first time since August 2007) and was the largest year-over price increase in three years. On a month-over basis, December marked the tenth month in a row to see an increase in median price (+0.8%). In Los Angeles County, unit sales during December rose by +4.3% over the year. The median price increased by +4.9% to $353,560. In Orange County, unit sales jumped by +17.9% during December, while the median price advanced by +12.1% to $496,070. Compared with November the median price in both counties lost ground – retreating in Los Angeles County by -1.7% and by -0.6% in Orange County. In the Riverside-San Bernardino area, unit sales plummeted by -19.3% compared with December 2008 (and that followed a drop of -13.5% in November). However, December sales jumped by +13.6% over the month after falling by -17.6% in the previous month. The median price also fell in December, declining by -5.1% to $181,130. Unit sales in San Diego County during December increased by +6.9%, while the median price rose by +10.3% to $382,230. On a month-over basis, sales rose by a robust +22.0% after falling by -17.4% in November. Ventura County saw an improvement in unit sales (+8.2%) in December and a median price that rose by +15.4% to $427,890. In the San Francisco Bay area, unit sales rose by a strong +28.7% over the year (and by +6.6% for the month). The median price surged by +15.1% to $536,070. Home sales in December were strong, but the exceptionally large year-over increases seen at the beginning of the year diminished as 2009 drew to a close. December’s sturdy showing was attributable in part to near-historic highs in home affordability and low interest rates (4.93% 30 year fixed). The CAR reported that the unsold inventory index fell to 3.8 months in December, compared with 5.6 months at this time last year.